Market capitalization of 27 commercial banks of Nepal

INVESTOPAPER

Banking stocks account to 52.52 percent of the total market capitalization of the Nepalese stock market.

The market capitalization of a company refers to the total market value of the outstanding shares of that company. So, basically the market capitalization ( also known as market cap) of a company is obtained by multiplying the market price per share to the number of outstanding shares of that company. This calculation will help you to determine the size and the strength of the company in the market.

Market capitalization can be helpful to diversify your portfolio because it is essential to pick different sized companies to minimize the risk associated with your investment. One of the basic features of blue-chip stocks is large market capitalization. On the other hand, the company with small market capitalization can become the most valuable companies in your portfolio if they become successful. But they have a high risk compared to large-cap companies.

Market cap is also a useful metric to determine the changing position of a company in the stock market either it be large, medium or small companies. Likewise, it also reflects the overall market behavior and sentiment too. For instance, when the total market cap of a Nepalese stock market increases on a daily basis for a time period, it is understandable that the market is on an upward trend and vice versa.

In the context of Nepal, the banking sector is one of the most preferred sectors for investment in the stock market. One of the reasons behind it is definitely the size of the company. All 27 banks have now met the minimum paid-up requirement of 8 Arab. The table below shows the list of the 27 commercial banks along with the market capitalization.

MARKET CAPITALIZATION OF 27 COMMERCIAL BANKS AS OF AUGUST 29, 2019 (RANKING WISE)

Rank

BANKS

NO. OF LISTED SHARES

MARKET PRICE (Rs.)

MARKET CAP (In Arba)

1

Nabil Bank

90,048,000.00

770

69.34

2

Nepal Investment Bank

127,697,488.00

464

59.25

3

Everest Bank

80,268,637.00

644

51.69

4

Standard Chartered Bank

80,114,306.00

625

50.07

5

Himalayan Bank

85,202,559.00

542

46.18

6

NIC Asia Bank

88,342,287.00

439

38.78

7

Agricultural Development Bank

90,155,288.00

426

38.41

8

Nepal SBI Bank

84,492,504.00

445

37.60

9

NMB Bank

96,181,624.00

382

36.74

10

Global IME Bank

103,105,160.00

295

30.42

11

Siddhartha Bank

88,876,045.00

314

27.91

12

Sanima Bank

80,012,554.00

348

27.84

13

Nepal Bank

80,359,548.00

323

25.96

14

Prime Commercial Bank

93,186,264.00

275

25.63

15

Prabhu Bank

88,926,640.00

262

23.30

16

Mega Bank

105,945,355.00

200

21.19

17

Machhapuchhre Bank

80,556,715.00

255

20.54

18

Bank of Kathmandu

80,631,016.00

253

20.40

19

Laxmi Bank

89,205,088.00

212

18.91

20

Sunrise Bank

81,525,571.00

230

18.75

21

Citizens Bank

83,704,853.00

217

18.16

22

Kumari Bank

86,856,160.00

203

17.63

23

Janata Bank Nepal

80,007,858.00

214

17.12

24

Nepal Bangladesh Bank

80,921,476.00

211

17.07

25

NCC Bank

70,185,873.00

201

14.11

26

Century Commercial Bank

84,154,720.00

158

13.30

27

Civil Bank

80,033,896.00

148

11.85

To know about the performance of the 27 commercial banks of Nepal in the fiscal year 2075/76, click the link below: